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Charlie Bilello, chief market strategist at Creative Planning, highlights that the longest duration Treasury bond ETF has dropped 67% from its peak in March 2020.
He attributes this steep decline to a sharp rise in the 30-Year Treasury yield, which climbed from an all-time low of 0.8% in March 2020 to 5.6%. Bilello comments that the combination of long bond durations and rising interest rates from historic lows can result in substantial losses for investors.
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Bilello has previously discussed the possibility of sharp U.S. GDP growth following significant government stimulus, cautioning that excessive measures could drive inflation, as noted in one of his earlier reports. He also reported that U.S. producer prices climbed 5.4 percent over the past year and have increased 4.1 percent annually over five years, according to recent data he highlighted. These observations follow his ongoing focus on inflationary trends and market risks.